PETALING JAYA: Capital A Bhd
is expecting a subdued second quarter of its current financial year ending Dec 31, 2026.
It said this would be followed by a robust ramp-up from the second half and a peak in the fourth quarter.
“This growth will be supported by the eCommerce peak boosting the logistics business (Teleport) and heightened travel demand driving performance for AirAsia MOVE, Santan, and AirAsia Next,” the group said in a Bursa Malaysia filing.
It said the quiet second quarter is anticipated as it historically coincides with the year’s lowest travel season, adding that a large portion of the company’s revenue and profitability is weighted towards the last two quarters of the year.
For the first quarter ended March 31, 2026 (1Q26), Capital A posted a net profit of RM22.45mil, compared to RM689.57mil in its corresponding quarter last year.
It recorded a revenue of RM766.59mil in 1Q26, up from RM414.52mil in 1Q25.
The group said pre-tax profit for the current quarter was RM26.42mil, a decrease from 1Q25’s RM61mil after adjustments from discontinued operations.
“This variance is primarily attributable to a foreign exchange (forex) loss of RM2mil in 1Q26, compared to a forex gain of RM21mil in 1Q25, and the cessation of RM15mil in interest income from discontinued operations following debt settlement upon the completion of disposal,” it said.
Aggregate segmental revenue before elimination saw a marginal decline to RM778mil from RM775mil in 1Q25, remaining consistent year-on-year (y-o-y).
Its Asia digital engineering business had a 7% y-o-y increase in total revenue to RM222mil in 1Q26, while Teleport achieved a net operating profit of RM3.1mil in 1Q26, marking an improvement of RM2.7mil y-o-y.
Meanwhile, AirAsia MOVE saw monthly active users rise by 23% y-o-y during the quarter, underpinned by sustained organic growth.
The group said its first quarter performance is largely tracking with internal targets.
It added that its mandate for 2026 is on improving its foundation and operational efficiency while adopting artificial intelligence (AI) across the business.
The company noted that it completed its Practice Note 17 regularisation plan in January, underpinned by five consecutive quarters of profitability, and is currently waiting for Bursa Malaysia to formally uplift its status.
Despite experiencing minimal impact from the Middle East conflict, Capital A has implemented stop-gap measures such as increases to fares and meal prices, and a fuel surcharge to protect commission collection and meal supply in anticipation of potential capacity cuts.
“Capital A remains vigilant and continues to monitor market conditions. While most capacity adjustments are occurring this quarter, passenger load factors remained resilient above the 80%,” the group said.
Additionally, it expects efforts to secure more third-party businesses to start materialising later this year, including Santan launching its “Grab & Go” business and AirAsia Next diversifying into non-airline based licensing income, which should provide significant uplift in late 2026.
